Controllership struggle intensifies for Thyssenkrupp shares
In an unexpected turn of events, Indian multinational Jindal Steel International has submitted a takeover offer for Thyssenkrupp Steel Europe, a move that has thrown negotiations with Czech billionaire Daniel Krétinsky into a new light.
The offer, which comes while all eyes were focused on the negotiations with Krétinsky, is currently being intensively reviewed by Thyssenkrupp's board. The board is focusing on economic viability, the continuation of the green transformation, and job security at steel locations. Jindal aims to preserve and expand Thyssenkrupp's industrial legacy with a commitment to green steel production, supported by strong financials and integrated value chain access.
The green transition involves financing a multi-billion-euro switch to climate-neutral production, a challenge that Jindal must overcome to prove its ability to run the steel division profitably in the long term. Economic viability is a non-negotiable condition, with no guarantees meaning no deal.
Job security is a paramount concern, and Thyssenkrupp Steel Europe and its 27,000 employees have everything at stake in this potential deal. IG Metall union has shown openness to talks with Jindal Steel, a positive sign for the negotiations.
The board in Essen has set clear criteria for evaluating the offer, including economic viability, green transition, and job security. Jindal Steel brings strategic know-how to the negotiations, a crucial advantage.
The stock for Thyssenkrupp Steel Europe reached a new multi-year high in mid-September, indicating that the markets are taking the deal seriously. A free analysis available from September 19 provides insight on whether to invest or sell Thyssenkrupp shares.
The market is awaiting the decision from Essen, which could seal the fate of Germany's largest steel producer. The offer has certainly added a new dimension to the ongoing negotiations, and the outcome will be closely watched by investors and stakeholders alike.
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